The Finance Ministry wants to increase state contributions to members of the National Savings Fund to help encourage citizens to participate in the retirement scheme.
Public contributions are currently set at a maximum of 100% of member contributions, with a limit of no more than 1,200 baht per year.
Somchai Sujjapongse, the director-general of the Fiscal Policy Office, said Finance Minister Kittiratt Na-Ranong has indicated state contributions to the fund should be increased to better benefit participants.
The legal framework establishing the fund has already been approved, and authorities are currently in the process of establishing the fund, which is aimed at helping workers currently outside of any formal pension scheme such as the Government Pension Fund or the Social Security Fund supplement their retirement savings, he said.
The existing law calls for state contributions to be made based on a sliding-age scale. Members aged 15-30 will receive matching public contributions of 50% with a limit of 600 baht a year, while those aged 30-50 will receive matching contributions of 80% up to 960 baht a year.
Members over 50 will receive 100% matching contributions up to a limit of 1,200 baht per year until the retirement age of 60. Members must contribute a minimum of 600 baht per year with a limit of 13,200 baht per year.
Dr Somchai acknowledged the conditions attached to the fund are relatively difficult to understand. More importantly, benefits received by participants are relatively low.
One proposal would have the government make 100% matching contributions up to a limit of 1,200 baht per year for members of all ages. No limit would be imposed on maximum contributions by members.
Dr Somchai said it was difficult to predict how many people would participate in the savings programme. The Finance Ministry estimates that if 24 million workers not covered by other retirement schemes participate, total state contributions could reach as high as 28.8 billion baht per month based on a maximum payment of 1,200 baht per member per year.
The Finance Ministry also is considering amendments to various regulations regarding the savings fund including whether those over 60 can continue to participate in the programme and if members can choose between receiving a regular pension or a lump-sum payment upon retirement.